Question 1: 40 points The balance sheets for Air Jordan Company is shown below. Additional information concerning transactions and events during 2040 are presented below. Air Jordan Company Balance Sheet Cash Accounts receivable (net) Inventory Long-term investments Property, plant & equipment Accumulated depreciation December 31 2040 2039 $ 42,350 $ 10,200 43,300 20,300 52,700 42,000 0 15,000 236,500 150,000 (37.700) (25,000) $337,150 $212,500 Accounts payable Accrued liabilities Line of Credit Long-term notes payable Common stock Retained earnings $ 13,250 28,900 25,000 70,000 130,000 70,000 $308,000 $ 26,500 17,000 0 50,000 90,000 29,000 $212,500 Additional data: 1. Net income for the year 2040, $71,000. 2. Depreciation on plant assets for the year, $12,700. 3. Sold the long-term investments for $50,000 (assume gain or loss is ordinary). 4. Paid dividends of $30,000. 5. Purchased machinery costing $26,500, paid cash. 6. Purchased machinery and gave a $60,000 long-term note payable. Instructions Fill in the blanks to complete the Statement of Cash Flows: Air Jordan Company Statement of Cash Flows For the Year Ended December 31, 2040 Increase (Decrease) in Cash Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities: $ Net cash provided (used) by operating activities Cash flows from investing activities Net cash provided (used) by investing activities Cash flows from financing activities Net cash provided (used) by financing activities Net increase (decrease) in cash $ Cash, January 1, 2040 Cash, December 31, 2040 $ Noncash investing and financing activities $